Insurance Bill clears Rajya Sabha hurdle

The bill provides for raising FDI cap in insurance sector from 26 per cent to 49 per cent

A bill providing for raising the FDI cap in insurance sector to 49% was passed in Rajya Sabha today but not before a heated debate and adjournments.

The Congress supported the Insurance Laws (Amendment) Bill, 2015, which was introduced after Deputy Chairman P J Kurien ruled that the new bill, as passed by the Lok Sabha, could be taken up as it was a "unique and unprecedented" situation.

The bill seeks to replace an ordinance issued by the government earlier, which had come under sharp attack from various quarters. It provides for raising FDI cap in insurance sector from 26% to 49%.

The Lower House had passed the Bill on March 4.

Proposing the Bill, Minister of State for Finance Jayant Sinha said the more FDi money will enable us to create more institutions like Life Insurance of India.

 

Members from Left parties, TMC and SP were questioning how a new bill could be introduced when a similar legislation of 2008, which was scrutinised by a Select Committee of Parliament, was pending.

They contended that the House is setting a "wrong precedent" by not appoving its listing by the Business Advisory Committee.

Kurien acknowledged that the situation was "unique and unprecedented" but it is up to the House to either allow, withdraw or reject the Bill.

It seeks to amend the Insurance Act, 1938 and the General Insurance Business (Nationalisation) Act 1972 and the Insurance Regulatory and Development Authority Act, 1999.